Top Research Reports for Chevron, AstraZeneca & Netflix
Friday, September 8, 2023
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Chevron Corporation (CVX), AstraZeneca PLC (AZN) and Netflix, Inc. (NFLX). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Shares of Chevron have gained +8.0% over the past year against the Zacks Oil and Gas - Integrated - International industry’s gain of +17.8%. The company is considered one of the best-placed global integrated oil firms to achieve sustainable production ramp-up.
America’s No. 2 energy firm’s existing project pipeline is among the best in the industry, thanks to its premier position in the lucrative Permian Basin. However, Chevron was not immune to the commodity price crash of 2020, forcing it to cut spending substantially.
The company’s high oil price sensitivity is a concern too. Moreover, the supermajor’s 10-year reserve replacement ratio of 100% is indicative of its inability to replace the amount of energy produced.
(You can read the full research report on Chevron here >>>)
AstraZeneca’s shares have gained +14.1% over the past year against the Zacks Large Cap Pharmaceuticals industry’s gain of +25.7%. The company enjoys a diverse product portfolio and a global footprint. AstraZeneca’s key drugs like Lynparza, Tagrisso, Imfinzi, Fasenra and Farxiga should keep driving revenues.
Almost all non-COVID therapy areas of AstraZeneca demonstrated double-digit revenue growth in the first half of 2023. Its pipeline is strong with important phase III data readouts lined up. It has also been engaged in external acquisitions and strategic collaborations to boost its pipeline while investing in geographic areas of high growth like emerging markets.
The Alexion buyout has added drugs like Ultomiris that are boosting its top line. However, AstraZeneca’s diabetes franchise faces stiff competition while pricing pressure hurts sales in the respiratory unit. Sales have slowed down in its key market, China.
(You can read the full research report on AstraZeneca here >>>)
Shares of Netflix have outperformed the Zacks Broadcast Radio and Television industry over the year-to-date period (+50.3% vs. +25.5%). The company is benefiting from growing subscriber base thanks to a robust portfolio. Crackdown on password-sharing and the introduction of paid sharing in more than 100 countries, which represents more than 80% of Netflix’s revenue base, is also expected to aid growth.
Netflix’s diversified content portfolio, which is attributable to heavy investments in the production and distribution of localized, foreign-language content, has been driving its growth prospects. It now expects revenue growth to accelerate in the second half of 2023.
Nevertheless, stiff competition in the streaming space from the likes of Apple, Amazon Prime Video, HBO Max, Disney+, Peacock, Paramount+ and TikTok is a headwind. Netflix’s leveraged balance sheet and a higher streaming obligation are concerns.
(You can read the full research report on Netflix here >>>)
Other noteworthy reports we are featuring today include Medtronic plc (MDT), Eni S.p.A. (E) and Marvell Technology, Inc. (MRVL).
Director of Research
Sheraz Mian
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
Chevron (CVX) to Gain from Massive Permian Acreage
Key Drugs Aid AstraZeneca (AZN) Sales; Pipeline Strong
Netflix (NFLX) Benefits from Paid Sharing & Robust Portfolio
Featured Reports
Medtronic (MDT) Gains in Market Share, Global Growth Robust
The Zacks analyst is impressed that despite macro-economic issues, Medtronic is reporting market share gains across core businesses. Non-U.S. developed and emerging markets expansions remain strong.
Solid Storage & Networking Chip Demand Aid Marvell (MRVL)
Per the Zacks Analyst, Marvell is growing on solid demand for its storage and networking chips from accelerated 5G infrastructure deployment and increased adoption of cloud-based storage solutions.
Otis (OTIS) Banks on Backlog Growth Amid Currency Risks
Per the Zacks analyst, Otis benefits from New Equipment backlog growth and increased net sales owing to operational improvements gains and share count. However, currency risks and high costs ail.
Investment boost Ameren Corporation (AEE), Weak Solvency Woe
Per the Zacks analyst, Ameren Corporation's systematic investment in growth projects and infrastructure upgrade tend to boost its long-term growth. Yet, its weak solvency position remains a concern.
Strong Service Demand Aids Rollins (ROL) Amid Rising Costs
Per the Zacks analyst, favorable demand environment fueled by robust construction activity is benefiting Rollins while escalating costs remain a concern.
Pricing, Cost Saving Actions Aid Amcor (AMCR), Volumes Ail
Per the Zacks analyst, gains from pricing actions and cost savings initiatives will help Amcor negate the impact of low volumes and higher costs on its results.
Ciena (CIEN) Benefits from Product Portfolio & Acquisitions
Per the Zacks analyst, Ciena's performance is gaining from increased demand for its diversified product portfolio and strong secular demand trends. Synergies from recent acquisitions also bode well.
New Upgrades
Eni's (E) Focus on Nat Gas to Achieve Net Zero Emission Aids
Per the Zacks analysts, Eni is well-positioned to capitalize on substantial growth prospects as the demand for natural gas is anticipated to increase, owing to companies striving for lower emissions.
AXIS Capital (AXS) Set to Grow on Improved Portfolio Mix
Per the Zacks analyst, AXIS Capital continues to build on Specialty Insurance, Reinsurance plus Accident and Health. Improved portfolio mix and effective capital deployment should pave way for growth.
Brand Strength & Demand to Aid America Eagle's (AEO) Top Line
Per the Zacks analyst, American Eagle witnessed brand strength and solid demand, particularly in June and July, driven by exciting new marketing campaigns. This led to Q2 top line growth of 0.3%.
New Downgrades
Unfavorable Currency Rates Hurt TreeHouse Foods' (THS) Sales
Per the Zacks analyst, TreeHouse Foods is hurt by unfavorable currency rates. The company witnessed currency headwinds of 0.2% on the top line in the second quarter of 2023.
Costs, Commercial Loan Exposure Hurt Valley National (VLY)
Per the Zacks analyst, steadily rising expenses on the back of strategic acquisitions are expected to hurt Valley National's bottom-line. Huge exposure in commercial loan portfolio is another concern.
Competition, High Interest Rates Ail OUTFRONT Media (OUT)
Per the Zacks Analyst, OUTFRONT Media's near-term outlook seems bleak amidst competition from several advertising channels and a high interest environment.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
AstraZeneca PLC (AZN) : Free Stock Analysis Report
Chevron Corporation (CVX) : Free Stock Analysis Report
Netflix, Inc. (NFLX) : Free Stock Analysis Report
Medtronic PLC (MDT) : Free Stock Analysis Report
Eni SpA (E) : Free Stock Analysis Report
Marvell Technology, Inc. (MRVL) : Free Stock Analysis Report
